IBEX 35 Breaks the Breaks by pressing the gas pedal!
Analyzing the recent behavior of the Ibex 35, we observe a week marked by a sideways movement, highlighting a strong bullish breakout on Wednesday, followed by a bullish continuation today. This momentum has followed a range-bound price construction since the end of February. Although industrial production communications were not as negative as expected, and expectations for next week's retail sales are positive, the index has experienced a 0.65% decline this week. Nevertheless, it has managed to hold above the 10,000-point mark, suggesting a possible search for the next milestone at 11,000 points. This advance is supported by the ECB's decision to maintain interest rates at 4.5%, along with inflation projections close to the central bank's target. In addition, the Ibex 35 has finally surpassed last year's highs, breaking through resistance at 10,300 points, which had previously been a significant hurdle.
Despite the 13-week consolidation in the price construction, the weekly close has reaffirmed the search for the next milestone in the 10,500 points zone to consolidate the uptrend. However, if this does not materialize, we could see a pullback towards 10,222 points to look for a rebound. The indicators show an oversold level of 68.49%, indicating that the Ibex 35 could still have enough momentum to reach 10,500 points before taking a breather. However, the checkpoint stands at 10,074 points, suggesting that the index may lack the strength to sustain a prolonged uptrend. It would be out of character for the index to reach the 11,000 mark and subsequently 2017's all-time high at 11,135 points given the current economic backdrop.
It will be crucial to keep an eye on news from the Spanish government regarding its companies next week, as it could influence the direction of the Ibex 35. As always, it is important to stay informed and be prepared to adjust investment strategies according to market developments.
Ion Jauregui - AT Analyst
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
Despite the 13-week consolidation in the price construction, the weekly close has reaffirmed the search for the next milestone in the 10,500 points zone to consolidate the uptrend. However, if this does not materialize, we could see a pullback towards 10,222 points to look for a rebound. The indicators show an oversold level of 68.49%, indicating that the Ibex 35 could still have enough momentum to reach 10,500 points before taking a breather. However, the checkpoint stands at 10,074 points, suggesting that the index may lack the strength to sustain a prolonged uptrend. It would be out of character for the index to reach the 11,000 mark and subsequently 2017's all-time high at 11,135 points given the current economic backdrop.
It will be crucial to keep an eye on news from the Spanish government regarding its companies next week, as it could influence the direction of the Ibex 35. As always, it is important to stay informed and be prepared to adjust investment strategies according to market developments.
Ion Jauregui - AT Analyst
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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